European Markets Stage Modest Recovery After Subdued Start

September 20, 2019

By Investors Hub

European markets have edged higher on Friday, staging a modest recovery after a subdued start. Investors are keenly following the developments on the trade front and hoping the latest round of stimulus measures announced by central banks will help revive economic growth.

While the French CAC 40 Index has risen by 0.4 percent, the U.K.?s FTSE 100 Index and the German DAX Index are up by 0.2 percent and 0.1 percent, respectively.

Shares of French IT services company Alten have shown a significant move to the upside following a rating upgrade by SocGen.

In economic news, German producer price inflation eased more than expected in August, data from Destatis revealed. Producer prices grew only 0.3 percent year-on-year, slower than the 1.1 percent increase in July. Prices were forecast to rise 0.6 percent.

On a monthly basis, producer prices decreased 0.5 percent, in contrast to a 0.1 percent rise in the previous month. Economists had expected prices to fall 0.2 percent.

Data released by French statistical office Insee showed wages in the non-farm business sector decreased 1.2 percent in the second quarter, reversing a 1.8 percent jump in the first quarter.

Without the special bonus for purchasing power, or PEPA, wages and salaries would have risen by 0.7 percent in the second quarter.

On a yearly basis, wages and salaries increased 1.5 percent, which was slower than the 3.1 percent rise in the previous quarter.

On the Brexit front, Britain’s Brexit minister Secretary Stephen Barclay is scheduled to meet the EU’s chief Brexit negotiator in Brussels today.

On Thursday, European Commission President Jean-Claude Juncker said “we can have a deal” before the Halloween deadline.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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